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In 2007, Peterson Economics was retained by Dowling Company to complete a detailed market and financial analysis evaluating the highest and best use of Makena Resort, a 25-year-old resort community occupying one of the most desirable oceanfront sites on Maui, but generating virtually no income or other ongoing profits for the prior landowner. Dowling Company was in the midst of determining whether to bid for the resort and, if successful, how to redevelop and reposition the project in the market.
Based on a detailed market analysis and on our industry experience, Peterson Economics concluded that the project’s value would be maximized by demolishing the existing oceanfront hotel — a 310-room resort hotel — and repositioning the entire 1,800-acre site as Hawaii’s finest second-home community, centered around the finest beach club in the western hemisphere, a high-end spa and fitness center, two private golf courses, and an intimate, lodge (serving members, guests, and prospective buyers). Dowling Company and Morgan Stanley subsequently closed on the property in June 2007 for a price of $575 million and adopted Peterson Economics’ recommendations.
Peterson Economics has since remained heavily involved with the initial planning and design effort, working closely with the project’s land planners, architects, and others to fine tune the development program, amenity package, club structure, design themes, and other key elements. Dowling Company is now in the process of securing permits and moving forward with this program. Maluaka, an ultra-high-end oceanfront condominium community within Makena, for which Peterson Economics completed the initial market and financial analysis in 2004, will become the first phase of the “new Makena.” New condominiums at Maluaka are priced at $4 million to $14 million, with prices averaging more than $2,100 per square foot.
» Next: Suncadia Resort, Roslyn, WA
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